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REAL ESTATE

58 million for Sweden’s most expensive flat

Spanning 450 square metres, with rooftop terrace and sweeping balcony, a newly converted flat in Östermalm, Stockholm and set to go on the market for 58 million kronor ($8.4 million) could set an all time high.

58 million for Sweden's most expensive flat

If you compare it to New York or Nice it might not raise many eye brows, but for a flat in Stockholm this is a price tag rarely seen. But eastate agent Siv Kraft who will try to sell the new luxury loft starting mid-October, said it could have been higher.

“The price per square metre isn’t actually very high,” she told The Local, “but if nobody is willing to pay that price it will be split up into several flats.”

The space is prepared, but not finished. It will have straight walls to make better use of the space, which is rare for lofts, and a raised ceiling, with a private elevator taking you straight into the heart of the palatial accomodation.

Whoever wants to buy the flat will be given the opportunity to tailor the 450 square metres to fit their personal preferences.

“They will get the blueprint and a description, and then everything can be changed to fit their needs,” Kraft explained. “I hope we’ll find a buyer with the need for a large space, but who doesn’t want to move to a house outside the city. There aren’t very many big flats like this.”

In May the Affärsvärlden business daily listed the 10 most expensive flats in Sweden, all of them to be found in Stockholm.

If Siv Kraft manages to secure the asking price for this flat it will claim top position, making a 560 square metre, 45 million kronor flat also in Östermalm runner-up, followed by nine others ranging from 27.5 million down to 13.

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REAL ESTATE

Zurich has one of the world’s ‘riskiest’ housing markets

The risk of a housing bubble is on the rise in Switzerland’s largest city Zurich, according to a new study.

Zurich has one of the world’s 'riskiest' housing markets
Zurich is at risk of a housing bubble, study says. Photo by AFP

This is the first year that Zurich joined the ranks of cities at risk of a housing bubble since UBS bank started its annual analysis in 2014.

The Global Real Estate Bubble Index, which surveyed 25 major cities around the world, puts the housing market into long-term perspective and is designed to track the risk of property price bubbles in those locations.

Housing bubbles are periods characterized by high demand, low supply, and inflated prices.

According to the analysis, “Zurich recorded the strongest price growth rate of all Swiss economic regions in the last decade. Its housing market has been characterized by a relatively fast supply expansion and benefited from increasing demand.

“The owner-occupied market has dried up, while the coronavirus crisis has hardly left any traces on it. In fact, housing located near Zurich's city center benefited from increasing demand.

“The high willingness to pay reflects both expectations that prices will further increase and sustained investment demand. In line with these developments, the city now joins the bubble risk ranks.

READ MORE: Buying property versus renting in Switzerland: What is actually cheaper?

Housing in Switzerland’s second-largest city, Geneva, is also notoriously expensive, but Zurich ranks higher in terms of real estate prices, the Index shows.

“Geneva’s housing market has recovered from losses incurred during the period between 2013 and 2016. Adding to this, low mortgage rates keep home-ownership appealing in light of inflated market rents and the city benefits from its international standing, while continuing to attract foreign nationals despite affordability constraints”, UBS said.

While Zurich figures in the seventh place in the Index, it is topped by even ‘riskier’ European cities like Munich, Frankfurt, Paris, and Amsterdam.

“The Eurozone stands out as the region with the most overheated housing markets”, the study found.

London, Stockholm and Moscow are classified as ‘overvalued’ but not at risk of a bubble, while Madrid is ‘fair-valued’.
 

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